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Strategies & Market Trends : Joe Copia's daytrades/investments and thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Joe Copia who wrote (5351)	6/18/1998 4:25:00 PM
From: brasilbound	Read Replies (1) \| Respond to of 25711

JOE; I got a pick for you i think you should track... Elephant & Castle Group Inc. Nasdaq: PUBSF - current price $5 Initial DD shows strong revenue growth over last 4 years. $30M market cap Restaurant Business. Beginning to move into Hotel space from public locations where they have lost money with expenses. Elephant & Castle Group Inc. (NASDAQ:PUBSF, PACIFIC:PUB) today reported sales of US$6,775,000(1) for the quarter ended March 29, 1998, up 18% over sales of US$5,718,000 reported for the same period in 1997. 12mos(1) 1997 1996 1995 1994 1993 Revenues ($mil) 24.7 23.9 21.4 18.9 18.1 17 In order to finance the growth of the company, Elephant & Castle has raised substantial capital through an impressive source: General Electric Investments. In December 1995, General Electric Investment Private Placement Partners II (GEIPPP II) purchased $1 million in equity and $3 million in subordinated convertible notes. In March 1997, GEIPPP II invested an additional $2 million in subordinated convertible notes, and another $2 million in convertible debentures is expected to be issued to GEIPPP II by mid-October. This would leave an additional $2 million in notes available to be issued to GEIPPP II, which would bring its investment to $10 million. Based upon profitability estimates for the planned Rainforest Cafe restaurants and the revenues expected from anticipated franchise agreements, we feel that earnings could reach $0.82 or more in 1999. After applying a common Eatertainment industry forward P/E ratio of 24 on Rainforest earnings and a forward P/E of 16 on other restaurant earnings, we feel that PUBSF stock could reach $17 or higher when investors begin to look at 1999 earnings, most likely by late 1998. -from SmallCap Investor smallcapinvestor.com Recent News Headlines 6/15/98 1:36:58 PM Business Wire Rainforest Cafe Opens in Vancouver 5/21/98 12:10:21 AM Other Elephant & Castle Group Inc. Announces First Quarter Results

To: Joe Copia who wrote (5351)	6/19/1998 12:09:00 AM
From: Warlock	Respond to of 25711

CLWK is looking very attractive at these levels. Here's a copy of the new thread summary: Clearworks Technologies is a little known company that is currently growing quite rapidly through a steady stream of acquisitions. Dormant for some time, in the past few weeks it has undergone a name change, and is currently carving out a nice niche in the business and information technology market. CLWK is involved in large part with customizing internet/network hook-ups for major corporations. Depending on the company and industry, they'll specifically customize a product. (For example, if a huge corporation with dozens of international locations would need a payroll system for example. . . CLWK would design a software system allowing for network compatibility between each and every international location.) But enough about the company background -- (and I'll firmly admit, I'm no expert in technological systems such as CLWK is involved in. . . I'm much more at home with analyzing the fundamentals of the stock. Hopefully some technological experts can help explain the business of the company in greater detail). The current shares outstanding are 7.2 million, with a float of roughly 600,000. The company had $6,000,000 in revenue last year. . . company's goal is to generate $25,000,000 in revenues in 1998. I've been informed that Clearworks has just signed letters of intent to make acquisitions which will add $17 million in revenues for the year. Add that to the $6 million for current operations, and we are already at $23 million projected for the year. Assuming the continuation of an aggressive acquisition campaign, revenues could end up being much higher than $25 million for the year. What is especially interesting are the terms of the acquisitions: an "earn-out." In effect, CLWK will pay for their acquisitions with cash earned from the acquisitions themselves. As the acquisition brings in cash, that cash will therefore be used to fund the acquisition. So there will be no share dilution, no convertible debentures, nothing. . . just a set of non-dilutive acquisitions. For 1998 CLWK should manage a tidy profit. But future years will post even higher numbers, as the acquisitons will be bought and paid for by that point. The company is also planning to implement a 3 for 1 FORWARD split. (NOT a reverse). Often in cases of OTC splits, the split is quite lucrative for shareholders. . . while the number of shares in this case would be tripled, most likely the price will not fully drop by two-thirds. For example, if CLWK split 3 for 1 at $6, you'd anticipate a share price of $2. However, historically, an quick bounce to the $2.50 range would normally be more accurate. As reverse splits are generally the kiss of death to OTC stocks, a forward split is conversely a very bullish sign. Acquisitions are rumored to be announced in the very near future. As Clearworks Technologies (CLWK) is a very little known company with a small float, the company can move very easily. With the information that I've gathered, it looks like any movement that the stock has from this point should be UP. Technically the stock has solid support in the $2 range, so downside is limited. Upside is much more intiguing. I am fairly confident that this little known company will not dissapoint investors. My information has came from the same source that lead me to start a TGSK thread at .68, an ARXA thread at .35, and caused me to make posts concerning ETPI at .30. If you are not familiar with these companies, you may want to check a current chart or quote to see why I have the utmost confidence in this information concerning CLWK.